Sorry to tell you this but that's how fast the game runs. Battles take wayyyy too long. It's just the way it is. Things improve a lot though once you find a Fireball wand and 'duplicate' it via the remove/add character 'feature'.

At least with WinUAE you can make your 'Amiga' run as quickly as your PC allows hence speed up those battles up a bit. But it's a really horrendous game to play when you're up against 30 goblins, at least early on. I finally managed to finish it several years ago - thanks to the walkthru. (written by Radagast the Brown, if I remember)